If you're new here, this blog will give you the tools to become financially independent in 5 years. The wiki page gives a good summary of the principles of the strategy. The key to success is to run your personal finances much like a business, thinking about assets and inventory and focusing on efficiency and value for money. Not just any business but a business that's flexible, agile, and adaptable. Conversely most consumers run their personal finances like an inflexible money-losing anti-business always in danger on losing their jobs to the next wave of downsizing.
Here's more than a hundred online journals from people, who are following the ERE strategy tailored to their particular situation (age, children, location, education, goals, ...). Increasing their savings from the usual 5-15% of their income to tens of thousands of dollars each year or typically 40-80% of their income, many accumulate six-figure net-worths within a few years.
Since everybody's situation is different (age, education, location, children, goals, ...) I suggest only spending a brief moment on this blog, which can be thought of as my personal journal, before delving into the forum journals and looking for the crowd's wisdom for your particular situation.

In a home I need walls, roof, windows, and a door that can be opened and closed. I also need a place to cook, a place to eat, a place to sleep, a place for a guest, and a place to write. More space is not better. More space means a bigger house. A bigger house means more hassle, more maintenance, more work to pay for rent, mortgage, taxes, and less time for living. More space also attracts more stuff which eventually means less space. The amount of actual space in a room depends more on personal tolerance for clutter than anything else. Some things make life easier, but more things do not make life more easy. More things mean more things that can break down and more time spent fixing or replacing them. Comfort is freedom and independence. Comfort is having the sweat glands and metabolic tolerance to deal with heat and cold. It is not central heating or air conditioning which may fail or be unavailable. It is not plushy seats but a healthy back. Luxury is not expensive things. It is a healthy and capable body that moves with ease with no restraints because something is too heavy, too far, too hard, or too much. It is a content and capable mind that can think critically, solve problems, and form opinions of its own.
Success is having everything you need and doing everything you want. It is not doing everything you need to have everything you want. If so then you do not own your things, instead your things own you. I do not need to own a particular kind of vehicle. I need to go from A to B. I do not need fancy steak dinners, rare ingredients, or someone else to prepare my meals whether it is a pizza parlor, a chef, or an industrial food preprocessor. I need food to live. Food to fuel my body and brain. Luxury is not eating at 5 five star restaurants. Luxury is being able to appreciate any food. Comfort is eating the right kind and the right amount of food. Not whatever I want. Eating and moving right prevents diseases, pains, and lack of functionality. I am what I eat and I look what I do. Everybody is. It is the physiological equivalent of integrity. To say what I mean and mean what I say. This too makes life more comfortable. Money is opportunity. Opportunity is power. Power is freedom. And freedom means responsibility. Without responsibility, eventually there is no freedom, no power, no opportunities, and no money. More importantly, freedom is more than power. Power is more than opportunity. Opportunity is more than money. And money is more than something that just buys stuff. It is simple to understand but hard to remember, but do remember this if nothing else.

34 users responded in " Manifesto "

Amen! I couldn’t have said it better or more succinctly myself! I especially liked the statements about things bringing clutter and maintenance issues. These are things that I’ve just come to realize myself in the last couple of years, and I’ve resolved to start doing something about it by ridding myself of unnecessary possessions and eventually downsizing my house.

The most stress free time in our lives, even with 4 little kids, was the two years we spent living in our RV at the beach. Man, that was heaven. Low stress, high enjoyment. Your words ring very true and we can’t wait to sell it all and return to the RV once again! Life was simpler and happier.

Steve Austin said,

I predict a cult following were you to publish a book with your manifesto as the central idea. ;-\

And I am reminded of John Boyd: “…the actions we undertake as individuals are closely related to survival, more importantly, survival on our own terms.” Destruction And Creation, 1976

Thank you very much for such a passionate post on your decree. It is obvious the level of dedication you have for your lifestyle and amount of energy you put in logically analyzing each step–very inspiring and contagious! I look forward to exploring your blog further.

sai said,

Absolutely fantastic! This is perhaps the best piece of personal development/ self-actualization writing that I have read in years.

[…] And I’ll finish off with a quote, just because I think that’s a nice way to end: “Success is having everything you need and doing everything you want. It is not doing everything you need to have everything you want.” – Early Retirement Extreme […]

[…] have to run with everything locked down until 2015. That means living like ERE, which, although I agree with his sentiment Success is having everything you need and doing everything you want. It is not doing everything you […]

[…] way of fugal living and dedicated savings get there in remarkably short time. You can find some here. If you can live on $7000 per year, $175,000 gets it done figuring an annual withdrawal rate of […]

[…] way of fugal living and dedicated savings get there in remarkably short time. You can find some here. If you can live on $7000 per year, $175,000 gets it done figuring an annual withdrawal rate of […]

Great manifesto, you’ve actually motivated and inspired me to create my own one. I think having a manifesto to refer to helps you stay focused on your long term goals. Like you my aim is to retire early and become financially independent. Thanks for sharing the excellent posts and continue with the insightful thinking. Bravo!

I love this manifesto, less is more could not be more true in this materialistic world which holds the masses in debt cells. I was in debt and I’m slowly paying it off, I’m making inroads into paying my mortgage off, I’ve minimalized my life and I cant wait until I’m financially independent and ready to retire 30 years before I’m allowed to. Great post.

I like what you’ve achieved here. Clearly your happy in your own way. I’m thinking of going down a similar road however it seems that society in general does not condone retiring early and minimizing your life in terms of material consumption. For me it’s hard because everyone I know is expected to work until they retire at 65 and it’s hard to keep positive about it. Your blog really helps. Thanks Jacob.

You hear ethical/professional conduct bandied around in the workplace a lot and everybody strives to be fine upstanding citizens in the public forum but what do they do in the quiet of their own homes – well the news headlines tell us.

Same stands for those that profess to eat well, work out etc – the proof is in their appearance. I like your wording Jacob

[…] people to encourage me on this path. It was probably six months or so later before I stumbled on ERE. And then MMM. And then, and then, and […]

Doug said,

I ALMOST agree with you. The exception would be when, without air, it is impossible to sleep at night. I was in a Bangkok guest house that I really enjoyed, but when the weather got so hot and humid, the fan was not enough to cool me even when I had not even a sheet to cover me and was completely naked.

[…] I’m not sure which ERE article to reference, but have fun checking out his site. Many people find his approach a bit too extreme, but I think that its good to be aware of the lower end of the living expenses spectrum: http://earlyretirementextreme.com/manifesto.html […]

Disclaimer / CYA

The information in this blog/forum is distributed on an "As Is'' basis, without warranty of any kind. The site owner may have a financial relationship with some of the companies or products mentioned on the blog. This blog is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com. Advertisement does not imply endorsement. Information might not be completely comprehensive and some readers may want to consult additional sources. This blog/forum does not contain professional advice. For professional advice, consult a professional. By reading this blog/forum you acknowledge full responsibility for your actions with respect to any loss or damage caused or alleged to be caused directly or indirectly in connection with the blog/forum.